Financial services are economic services provided by the finance industry, which encompasses a broad range of service sector firms that provide financial management. Financial services help individuals and businesses manage their money, investments and assets. They offer products like credit cards, mortgages, insurance and loans. Financial services are also a critical component of the global economy, providing employment to millions of people around the world and allowing consumers to better plan for their futures by saving and investing money.
When many people think of the financial services industry, they imagine banks, stock brokers and mortgage lenders. However, the industry is much more complex than that. It includes a variety of other services, like investment banking, insurance and the redistribution of risk.
The different sectors of the industry include deposit-taking, loan and investment management, insurance, securities trading and asset management. These sectors are interconnected, with each one offering a variety of different financial services to consumers. In addition, there are many independent financial services companies that are not directly associated with any of the larger financial service providers.
Among these companies are investment funds, mutual fund companies and private equity firms. Each of these companies offers investors the opportunity to invest in various funds, which in turn are used to purchase stocks and bonds. These companies generate revenue through fees and the spread between interest rates charged on loans and deposits.
Other services that are part of the financial services industry include treasury services, which are activities related to managing cash and other liquid assets; and debt and equity capital markets, which are services provided by institutions that raise money by selling securities or borrowing and lending money. The broader scope of the industry also includes actuarial services, which are activities related to the assessment and measurement of risk in insurance and other financial contracts.
A healthy financial services industry benefits us all. It provides consumers with the funds they need to save for a home, education or a new car. It helps protect them from financial hardship by providing insurance and it enables businesses to grow and expand. Ultimately, it gives millions of people good jobs that allow them to live the lives they want.
The best financial services professionals are incredibly passionate about their work and often find it rewarding to be able to make a difference in the lives of others. They love to problem solve and they enjoy the fast-paced and ever-changing environment of the industry. They also tend to get paid well, with salaries ranging from PS45,000 for entry-level roles to high five figures for senior positions.
The future looks bright for the financial services sector, with a growing number of people turning to online banking and other technological advancements to take control of their finances. In addition, there are more initiatives than ever before to break the taboo surrounding talking about money and encourage more of us to get involved in managing our finances.